HEALTHSOURCE ANNOUNCES INTENT TO ACQUIRE REMAINING INTEREST IN HEALTHSOURCE MAINE, INC.
CONCORD, N.H., Oct. 21 /PRNewswire/ -- Healthsource, Inc., (NYSE: HS), a leading operator of health maintenance organizations (HMOs) and managed health care services, announced today that it has signed a letter of intent with Healthsource Maine, Inc., whereby Healthsource would acquire through a merger the remaining 60 percent interest in Healthsource Maine in exchange for approximately 252,750 Healthsource shares. This share total would be adjusted based on the market price of Healthsource, Inc. shares at closing so that the total value of the Healthsource shares issued in the merger will equal approximately $11.5 million. The merger is subject to a mutually acceptable definitive agreement, receipt of any required regulatory approvals, approval by the shareholders of Healthsource Maine and certain other conditions. The closing of the merger is expected to occur by January 1994. Healthsource Maine is an HMO company that Healthsource formed together with approximately 160 Maine physicians in 1986; Healthsource currently owns 40 percent of the stock of Healthsource Maine. Healthsoue? Maine had fiscal 1992 revenues and net earnings of $38.5 million and $2.5 million, respectively. Healthsource Maine's revenues and net income for the six months ended June 30, 1993 were $27.9 million and $1.0 million respectively. Healthsource Maine had a net worth at June 30, 1993 of $6.1 million. Norman C. Payson, M.D., president and CEO Healthsource, Inc. said, "We see the merger between Healthsource and Healthsource Maine as a natural evolution of the highly successful partnership between Maine private physicians and ourselves. Together we have succeeded in introducing managed care to Maine and making quality health care affordable for tens of thousands of Maine residents. In this effort we have proven that managed care can and does work in rural environments. Now in this era of health care reform we look to consolidate our efforts so we can accommodate more people in our managed care programs." David Schall, M.D., chairman of Healthsource Maine said, "We are very pleased to become equity participants in Healthsource, Inc. In our more than seven year partnership in Maine, we have come to know Healthsource and its singular ability to make managed care work through close knit local physician relationships. We believe Healthsource, Inc. and Healthsource Maine are ideally designed to assist our state and nation in achieving health care affordability. We are looking forward to our future together." Healthsource, Inc. is a geographically diversified provider of a broad range of managed health care services. Healthsource, Inc. owns HMOs operating in New Hampshire, South Carolina, Indiana and Tennessee and has minority ownership interests in and provides services to HMOs in North Carolina and New York. Healthsource, Inc. also offers point of service plans, preferred provider organizations and utilization review managed care services, and provides managed care services to other health care payors, primarily Vermont Blue Cross. Healthsource, Inc. also owns EBPA, one of the largest third party claims administrators in New England. Effective April 1, 1993 Healthsource began providing managed care services to Liberty Mutual for the New Hampshire workers' compensation residual market. On April 13, 1993, Healthsource announced a joint venture with Chubb LifeAmerica to develop an HMO in New York City. On July 20, 1993, Healthsource announced an agreement to enter the Savannah, Ga., market in a joint venture with Candler Hospital of Savannah. On July 30, 1993, the company announced a joint venture with St. Vincent Infirmary Medical Center of Little Rock, Ark., to develop a new HMO serving the Arkansas market. -0- 10/21/93 /CONTACT: Thomas Congoran, chief financial officer, or Tracey Turner, shareholder relations, both of Healthsource, 603-225-5077; Kerry Thalheim, 212-661-8030, or Kathy Brunson, 312-266-7800, both of The Financial Relations Board, for Healthsource/ (HS)
CO: Healthsource Inc.; Healthsource Maine, Inc. ST: New Hampshire, Maine IN: HEA SU: TNM
DJ-JL -- NE013 -- 5239 10/21/93 12:44 EDT
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|Date:||Oct 21, 1993|
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